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T. Rowe Price Integrated US Sm Gr Eq PRDSX Sustainability

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Sustainability Analysis

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Sustainability Summary

T. Rowe Price Integrated USSmall-CapGrEq has several promising attributes that may appeal to sustainability-focused investors.

T. Rowe Price Integrated USSmall-CapGrEq's holdings are exposed to average levels of ESG risk relative to those of its peers in the US Equity Small Cap category, thus earning it an average Morningstar Sustainability Rating of 3 globes. Competing funds in the category with ratings of 4 or 5 globes have less ESG risk in their holdings. ESG risk measures the degree to which material environmental, social, and governance issues, such as climate change, biodiversity, human capital, as well as bribery and corruption, could affect valuations. ESG risk differs from impact, which is about driving positive environmental and social outcomes for society’s benefit.

One key area of strength for T. Rowe Price Integrated USSmall-CapGrEq is its low Morningstar Portfolio Carbon Risk Score of 9.71 and very low fossil fuel exposure over the past 12 months, which earns it the Morningstar Low Carbon Designation. Thus, the companies held in the portfolio are in general alignment with the transition to a low-carbon economy. The fund has little exposure (0.39%) to companies with high or severe controversies. From bribery and corruption to workplace discrimination and environmental incidents, controversies are incidents that have a negative impact on stakeholders or the environment, which create some degree of financial risk for the company. Severe and high controversies can have significant financial repercussions, ranging from legal penalties to consumer boycotts. In addition, they can damage the reputation of both companies themselves and their shareholders.

One potential issue for a sustainability-focused investor is that T. Rowe Price Integrated USSmall-CapGrEq doesn’t have an ESG-focused mandate. Funds with an ESG-focused mandate would have a higher probability to drive positive ESG outcomes.

ESG Commitment Level Asset Manager